I’ve recently been caught up in the KonMari tidiness phenomenon. Marie Kondo has sold millions of copies of her book, “The Life-Changing Magic of Tidying Up”, and was named on the Time 100 Most Influential People this year. Here’s how you can use her ideas for your money’s tidiness.
1. When you spend, ask yourself, “Does this Spark Joy?”
Research shows that experiences are worth more in terms of happiness than material goods. Think $20,000 vacations three years in a row instead of that new Porsche or Tesla lease. The goal of the game is to only keep the expenses that fit your model for true joy.
2. A passive aggressive credit card strategy
Subscription services are often too difficult to cancel and too numerous to hunt down. To fix this, I recommend changing your credit card number every 18 months or so. It’s less work than you think. Your subscription providers will contact you requesting you to re-up. Only respond to those you want to keep. Easy and tidy!
3. More rooms/accounts means losing track of your ‘stuff’
The average family I work with has well over ten investment accounts before we get started. That’s 529s, IRAs, Roths, Trusts, 401k’s, more 401k’s, etc. Many are invested without any particular goal in mind. The worst part is the smaller ones, $25K or less, that frequently get lost altogether! Consolidation into fewer accounts makes financial life easier.
After you’ve consolidated, ask yourself, “what is my total allocation across all investments in all locations?” “How much do I own in aggressive style investments?” “Would market shocks or volatility affect my lifestyle more than I currently suspect?” We can help you answer those questions. Immediate digital access to all of this information and more is the gold standard in 2016. We have that for you.
5. Know your costs to know your savings
Most people are keenly aware of their income rate down to the last dollar. The same can’t be said about expenses. The more accurate a picture you have of your expenses, the better you can tune your portfolio to match your goals. That might even lead to a discovery that there is more room to take bigger risks for bigger future returns.
6. Watch the dollars not the pennies
You might think you are being thrifty when you use coupons to save $10 in the grocery store or go to a less expensive gym. Unfortunately, all of that thrifty hard work is voided when you spring for an extra car, a boat, a third home, upgraded appliances throughout or a pool in the backyard. Focus your limited time and attention on ‘thriftiness’ that comes in denominations over $1000 or even over $10,000.
Unless you’re a financial professional or aficionado it’s unlikely that this process will come naturally to you. Like Ms Kondo, at Osbon Capital we’re obsessive about financial tidiness at every level. Ask for help for what works and what doesn’t, we’re here.
Max Osbon – email@example.com
This communication may include forward-looking statements. All statements other than statements of historical fact are forward-looking statements (including words such as “believe,” “estimate,” “anticipate,” “may,” “will,” “should,” and “expect”). Although we believe that the expectations reflected in such forward-looking statements are reasonable, we can give no assurance that such expectations will prove to be correct. Various factors could cause actual results or performance to differ materially from those discussed in such forward-looking statements.”
“Historical performance is not indicative of future results. The investment return will fluctuate with market conditions.
Past performance is not indicative of any specific investment or future results. Views regarding the economy, securities markets or other specialized areas, like all predictors of future events, cannot be guaranteed to be accurate and may result in economic loss to the investor.
Investment strategies, philosophies, allocations and holdings are subject to change without prior notice.
This communication is intended to provide general information only and should not be construed as an offer of specifically tailored individualized advice.
While the Adviser believes the outside data sources cited to be credible, it has not independently verified the correctness of any of their inputs or calculations and, therefore, does not warranty the accuracy of any third-party sources or information.
Adviser does not endorse the statements, services or performance of any third-party vendor.
Unless stated otherwise, any mention of specific securities or investments is for hypothetical and illustrative purposes only. Adviser’s clients may or may not hold the securities discussed in their portfolios. Adviser makes no representations that any of the securities discussed have been or will be profitable.
Any IPO alerts are purely informational and should not be construed as recommendations to invest.
Adviser is not licensed to provide and does not provide legal, tax or accounting advice to clients. Advice of qualified counsel or accountant should be sought to address any specific situation requiring assistance from such licensed individuals.
Any case studies or hypothetical client profiles are for demonstration purposes only. They illustrate the breadth and depth of the many clients we represent at various life stages. Any similarities to actual Adviser’s clients past or present are strictly coincidental. Individual advice and results will vary based on each client’s circumstances, objectives and prevailing economic conditions.